Shanghai has made history by establishing the country's first commercially registered mediation organization, the Shanghai Eastern International Commercial Mediation Center, or Eastern Mediation Institute, under the supervision of the Ministry of Justice.

This development marks a significant milestone in China's efforts to reform its commercial mediation system, adhering to a pilot reform task assigned by the central government to the free trade zones.

The institute, officially registered in March 2025, follows the implementation of the Shanghai Municipal Regulations on Promoting Commercial Mediation in the Pudong New Area in December 2024. It was initiated by the Shanghai Arbitration Commission, in collaboration with several legal and business associations, and received approval from the Shanghai Municipal Justice Bureau.

Notably, the institute has already successfully mediated its first case, a construction contract dispute worth 6.8 million yuan ($935,165), within half a month of its establishment. The parties involved praised the non-confrontational approach of mediation, which preserved their business relationship.

Led by President Sheng Yongqiang, the Eastern Mediation Institute aims to become a world-class commercial mediation organization, offering independent, impartial, professional, confidential, efficient, and flexible dispute resolution services. It plans to develop internationally competitive mediation rules and platforms, incorporating advanced technologies like artificial intelligence, and cultivate a team of mediators proficient in international rules and legal practices.